Valid Certificate in Insurance IF1 Dumps Ensure Your Passing [Q46-Q64]

Valid Certificate in Insurance IF1 Dumps Ensure Your Passing

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NEW QUESTION 46
How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?

A. Subrogation rights apply under both policies.
B. Subrogation rights only apply under a theft policy.
C. Subrogation rights do not apply under either policy.
D. Subrogation rights only apply under a personal accident policy.

Answer: B

NEW QUESTION 47
A retail customer CANNOT buy insurance directly from which type of insurer?

A. A composite insurer.
B. A direct insurer.
C. A mutual insurer.
D. A captive insurer.

Answer: D

NEW QUESTION 48
A risk control survey shows that premises proposed for insurance are in close proximity to a river with a history of flooding. The underwriter will consider this fact to be a

A. fundamental risk.
B. physical hazard.
C. pure risk.
D. moral hazard.

Answer: B

NEW QUESTION 49
When completing a proposal form, Tom declares that he has two spent speeding convictions. How, if at all, will the spent convictions affect an underwriter's decision to write the risk?

A. They will be ignored in accordance with the provisions of the Rehabilitation of Offenders Act 1974.
B. They will only be considered if Tom had a further speeding conviction in the last 12 months.
C. They will be classed as relevant information and will affect the premium.
D. They will not be considered as this is not an underwriting factor in motor insurance risk assessment.

Answer: A

NEW QUESTION 50
How would an employee benefit directly from her employer's business interruption insurance if its factory was forced to close temporarily due to flood damage?

A. By compensation for loss of bonus.
B. By payment of an early retirement pension.
C. By payment of a redundancy lump sum.
D. By continuation of her wages.

Answer: D

NEW QUESTION 51
A firm of insurance brokers holds client records on an index card system and does NOT intend to computerise this information. In what circumstances, if any, will these records be covered by the Data Protection Act 2018?

A. In no circumstances.
B. In all circumstances.
C. Only if the records include details of race.
D. Only if the records include dates of birth.

Answer: B

NEW QUESTION 52
Sara searches on a comparison website for car insurance. She selects the cheapest quotation and pays by credit card for immediate cover. This is known as

A. unconditional acceptance.
B. an offer.
C. a Terms of Business Agreement.
D. conditional acceptance.

Answer: A

NEW QUESTION 53
The Principles for Business slate that all customers should be treated

A. equally.
B. to a minimum standard.
C. fairly.
D. with due respect.

Answer: C

NEW QUESTION 54
Which principle of insurance prevents a member of the public from taking out an insurance policy on the life of a celebrity in the hope of receiving a windfall on the celebrity's death?

A. Indemnity.
B. Good faith.
C. Insurable interest.
D. Proximate cause.

Answer: C

NEW QUESTION 55
John and his wife arrange a household contents insurance policy in joint names with insurer A for a sum insured of £10,000. His wife arranges a second policy on the same basis with insurer B for a sum insured of
£20,000. Both policies have identical terms and conditions. What is insurer A's liability if a valid claim of
£3,000 is subsequently made?

A. £1,500
B. £3,000
C. £1,000
D. £2,000

Answer: C

NEW QUESTION 56
When a member of the Chartered Insurance Institute (CM) is dealing with a client, what specific guidance does the Code of Ethics give in relation to the member's knowledge and expertise?

A. The member must be qualified to a minimum of the CD's diploma qualification.
B. The member must provide the client with a copy of appropriate qualifications.
C. The member's knowledge and expertise must be kept up to date and relevant.
D. The member must notify the Cll of any shortcomings in his knowledge.

Answer: C

NEW QUESTION 57
An insured is temporarily disabled due to illness and unable to work. During this period, what type of insurance policy will typically pay a weekly benefit for up to two years?

A. An employers' liability insurance policy.
B. A medical expenses insurance policy.
C. A critical illness insurance policy.
D. A personal accident and sickness insurance policy.

Answer: D

NEW QUESTION 58
John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?

A. He does not need to disclose this.
B. At the date of the next premium payment.
C. Immediately, irrespective of prognosis.
D. Immediately, but only if the diagnosis is terminal.

Answer: A

NEW QUESTION 59
A policyholder achieves peace of mind when insuring his car by

A. preventing the chance of a loss occurring.
B. reducing the chance of a loss occurring.
C. eliminating the risk of loss.
D. transferring the risk to the insurer.

Answer: D

NEW QUESTION 60
Under the Insurance: Conduct of Business sourcebook (ICOBS) on product disclosure, what information about the claims-handling process must an intermediary provide to a consumer?

A. The contact details of the loss adjuster used by the insurer.
B. The number of days the settlement should take.
C. The policy number only.
D. The contact details of the insurer.

Answer: A

NEW QUESTION 61
Joel buys a house in a flood plain, but it has NOT flooded for 10 years. In purchasing insurance, Joel is managing what element of risk?